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Verizon Finalizes $4.8 Billion Deal to Acquire Yahoo — Update

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Verizon Communications Inc. has agreed to pay $4.8 billion to acquire Yahoo Inc., according to a person familiar with the matter, ending a drawn-out auction process for the beleaguered internet company.

The price tag, which includes Yahoo's core internet business and some real estate, is a remarkable fall for the Silicon Valley web pioneer that once had a market capitalization of more than $125 billion at the height of the dot-com boom.

The deal is expected to be announced early Monday. The price was earlier reported by Bloomberg News.

Verizon plans to keep the Yahoo brand, according to a person familiar with its plans.

When the bidding began in April, Verizon was the immediate front-runner with a market capitalization of roughly $ 228 billion and a plan for how to plug Yahoo into its upstart digital media business, which includes AOL properties it acquired last year for $4.4 billion.

Verizon's competition came primarily from private-equity firms such as Bain Capital, Vista Equity Partners, TPG and Advent International Inc., as well as a group led by Quicken Loans founder Dan Gilbert. AT&T Inc. joined the bidding process later, but it wasn't seen as a serious contender, people familiar with the matter said.

Verizon in June submitted a bid of $3 billion, but that didn't include Yahoo's real estate and came before last week's final round of bidding.

Verizon is building a portfolio of online content and aiming to monetize it...